Question - On January 1, 2012, Eves Company issued 1,100 shares of 4%, S70 par value, preferred stock for $106,000. The board of directors declared dividends on December 30, 2012. Eves paid the dividends on January 30, 2013. What journal entries are necessary to record these transactions?
Prepare all the necessary journal entries to record the transactions. (Record debits first. then credits. Exclude explanations from any journal entries.)
Now, prepare the journal entry to record the declaration of the dividends. Do not record the entry for payment of the dividends. We will do that in next step.
Finally, prepare the journal entry to record the payment of the dividends.